SINGAPORE (July 26): NRA Capital is maintaining its forecasts, valuation and “overweight” rating on Catalist-listed CNMC Goldmine Holdings at a fair value estimate of 38 cents – even as the group this morning issued a profit guidance to indicate that it expects 2Q17 profit to be “significantly lower” than the year before.
In a Wednesday report, analyst Liu Jinshu says he expects CNMC to breakeven in 2017 according to the research house’s base-case scenario, with 3Q performance depending on factors such as the USD/MYR rate and gold prices, whereas 4Q profitability will be driven by how fast the group can commission its upcoming carbon-in-leach (CIL) plant.
Highlighting that no mention of any loss was made in the group’s filing this morning, Liu believes that the lower y-o-y profitability has likely been priced in, and that the profit guidance is not a cause for NRA to revise its positive outlook on the counter.
